Tesla Expands German Presence to Battle Luxury Giants

Their share price has nearly quintipled this year, but nearly as noteworthy as Tesla Motors' stratospherically climbing market valuation is their aggressive expansion into the heart of where class-setting luxury cars are manufactured: Germany.

Tesla already has showrooms in Frankfurt, Dusseldorf, Hamburg, and Munich (home of BMW), and their further expansion into Berlin and Stuttgart (where Mercedes-Benz is headquartered) suggests a serious offensive against the country where luxury and engineering are points of national pride.

Most Popular

The move reflects more than a bit of hubris from the Palo Alto, California-based manufacturer, which has been building cars for a fraction of the time (and at a fraction of the volume) of the major German manufacturers, yet is valued at a staggering $20.1 billion, more than a quarter of BMW's overall worth.

Tesla claims that 100 percent of the population of seven European countries will be within 320 kilometers (or 198 miles) of a Supercharger station by the end of 2014, providing a much-needed psychological safety net for would-be EV owners. Will the region's automakers flex their muscles by focusing on electron-powered exotics like the 918 Spyder or more attainable battery-powered offerings like the i3? That question might best be answered by auto execs. But the upside to consumers around the globe is that EV options are expanding dramatically, with manufacturers battling harder than ever for a slice of the electric-powered pie.